This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Bring On the Wal-Mart Mortgage, America Says

NEW YORK (TheStreet) -- Consumers want in on what remains of the nation's cheap real estate, and for some polled by Carlisle & Gallagher, a Charlotte, N.C.-based management and consulting firm, the best way could be getting a mortgage from Wal-Mart.

In fact, one in three consumers say they would "consider" a Wal-Mart (WMT) mortgage, the company says.

Part of this could be wishful thinking from people feeling they're missing out on affordable homes.

Coldwell Banker is out with its newest list of America's most expensive and affordable real estate markets. The top six most expensive markets are all in California, with Los Altos the priciest market at $1.7 million for an average home purchase; the most affordable U.S. market: Redford, Mich., where you can snap up a home for $60,000 (nearby Detroit is third on the list, at $65,000 for a new home).

"Overall, the report found the average listing price of a four-bedroom, two-bathroom home in the U.S. to be $292,152," Coldwell Banker says in its most recent Home Listing Report. "Affordability remains strong in many markets across the country, as 36% of the markets analyzed by the report had an average home listing price of less than $200,000 for four-bedroom, two-bathroom homes."

But bank executives find they're increasingly not part of the homeowner vision, as 80% of consumers surveyed by Carlisle & Gallagher say they would check out a "non-bank" for their next mortgage. The company interviewed 618 American adults in September, and the results are surprising and alarming for traditional mortgage lenders. (In the survey, 48% would even consider a mortgage from PayPal.)

The data are revealing in several ways. For starters, mortgage consumers generally like their homebuying experience with banks -- 81% of respondents say they had a "high" consumer satisfaction rate with banks when landing a mortgage. But mortgage buyers have complaints too:

  • High interest rates, high payments and taxes and escrow are the top three most frustrating issues regarding consumers' current mortgages.
  • 56% of consumers blame slow execution as one of the most painful aspects of the mortgage process.
  • 32% said traditional lenders are difficult to communicate with.
  • 31% said they are unable to track the status of their mortgage application.
  • 26% said they are given untrustworthy advice.

So there you have it: higher prices and fees, slow execution timetables, lack of transparency and lousy advice are turning consumers away from banks and toward alternative providers such as Wal-Mart.

More amazingly, Wal-Mart and PayPal don't even offer consumer mortgages or have formalized plans to do so (although Wal-Mart does offer small-business loans at its Sam's Club subsidiary).

That can't be good news for banks, but it may be a real eye-opener down in Bentonville, Ark.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,021.54 -17.95 -0.11%
S&P 500 1,989.72 -2.65 -0.13%
NASDAQ 4,527.5750 -4.5290 -0.10%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs